Transparent polycrystalline ceramics of HfO2-Gd2O3:Eu with a composition of Gd1.48Eu0.02Hf0.5O3.25 were successfully fabricated from nanosized powders obtained by a combustion method. The resulting ceramics sintered in H-2 atmosphere at 1850 degrees C for 6 h have a near-pore-free structure and are composed of uniform grains with an average size similar to 500 nm. The obtained ceramics shows bright luminescence of Eu3+ at 612 nm under UV excitation. (c) 2005 The Electrochemical Society.